The increasing use of drones to assess real estate assets

Many people thought that the use of small unmanned aerial vehicles – or drones – by the general public was a fly-by-night fad. However, nothing could be further from the truth. In fact, the use of drones is having a huge impact on the insurance industry around the world according to a WeGoLook whitepaper.

It has been estimated that the value of drones to the worldwide insurance industry was 6.8 billion in 2015. This estimate reflects the cost of labor and services that have a high potential for replacement by drone powered-solutions.

What this means is that the use of drones in the field to assess real estate assets, particularly after a catastrophic event, will reduce the costs that carriers incur while also speeding up the claims process.

The reduction in cost primarily comes from leveraging the on-demand model. This means using on-demand workers who are licensed to fly drones in their area. These temporary workers can respond to the needs of adjusters at a moment’s notice.

Additionally, the claims process will become faster. That’s because the time it takes to dispatch an adjuster to the site of the damage will be eliminated, and the amount of information received by the adjuster will be more detailed.

The Emergence of drone technology

Drones are defined as any aircraft that can fly without a pilot aboard. According to at least one historian, the first practical use of drones dates back 1,900 years. That was when the Chinese used unmanned hot-air balloons as decorations and as airborne lanterns for military signaling. Modern drones were used for the first time in a commercial application in Japan during the 1980s. Then, unmanned helicopters turned out to be an efficient way to spray pesticides on rice fields.

Drones are the perfect platform for stunning aerial views. Current regulations allow for greater use of drones for filming, taking pictures, inspecting assets, and other commercial activities. Once drones became accessible to the average consumer, thousands of people have obtained FAA certificates allowing them to fly drones commercially. And, more than 770,000 drones have been registered with the FAA to fly in U.S. airspace.

The evolution of unmanned vehicle technology has improved to the point that their use enhances operations in a wide range of industries, including agriculture, infrastructure, security, transport, media and entertainment, telecommunication, mining, and, of course, insurance.

Assessing real estate assets

Carriers that cover real estate assets are among the early adopters of drone technology. This makes sense due to the nature of the work performed by field adjusters.

When assessing real estate claims, particularly after a disaster strikes, adjusters typically encounter hazardous situations. Depending on the location of the damage, they risk personal harm by having to climb ladders or navigate through rough terrain with a camera in one hand and a notepad in the other. Additionally, the damage that must be assessed may be in places that are simply inaccessible.

When drones are used, field adjusters have a better way to get very close to the damaged property. And, they can view the property from all angles while taking photos or video of the damage without disturbing the surrounding areas.

Drones do more than keep adjusters safe in the field. The enormous capability that drones provide could save significant time, while improving the productivity and efficiency of claims adjusters by as much as 40 percent to 50 percent. Moreover, because the photos taken by drones can be more precise, the overall quality of the claims process is improved.

Final thoughts

In the insurance industry, you need eyes everywhere. Today, an increasing number of carriers are leveraging the on-demand model to view property damage with the use of drones wherever that damage may be. This puts them in the position of being able to reduce the cost of completing the assessment of real estate assets while speeding up the claims process.